PLUM CREEK TIMBER CO INC - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION

Attached files

file	filename
8-K - FORM 8-K - PLUM CREEK TIMBER CO INC	a201403318k.htm
EX-99.1 - PRESS RELEASE - PLUM CREEK TIMBER CO INC	exhibit99120140331.htm

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)



(In Millions, Except Per Share Amounts)	Quarter Ended March 31,
(In Millions, Except Per Share Amounts)	2014			2013
REVENUES:
Timber	$	192		$	170
Real Estate	23			78
Manufacturing	90			86
Energy and Natural Resources	9			6
Other	3			—
Total Revenues	317			340

COSTS AND EXPENSES:
Cost of Goods Sold:
Timber	138			124
Real Estate	10			30
Manufacturing	79			75
Energy and Natural Resources	2			1
Other	3			—
Total Cost of Goods Sold	232			230
Selling, General and Administrative	29			32
Total Costs and Expenses	261			262

Other Operating Income (Expense), net	1			—

Operating Income	57			78

Equity Earnings from Timberland Venture	15			14
Equity Loss from Real Estate Development Ventures	(1		)	—

Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	27			21
Interest Expense (Note Payable to Timberland Venture)	14			14
Total Interest Expense, net	41			35

Income before Income Taxes	30			57

Provision (Benefit) for Income Taxes	—			1

Net Income	$	30		$	56

PER SHARE AMOUNTS:

Net Income per Share – Basic	$	0.17		$	0.35
Net Income per Share – Diluted	$	0.17		$	0.35

Weighted-Average Number of Shares Outstanding
– Basic	177.0			162.3
– Diluted	177.3			162.8

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



(In Millions, Except Per Share Amounts)	March 31, 2014			December 31, 2013
ASSETS
Current Assets:
Cash and Cash Equivalents	$	104		$	433
Accounts Receivable	44			29
Inventories	57			55
Deferred Tax Asset	7			9
Assets Held for Sale	77			92
Other Current Assets	13			15
	302			633

Timber and Timberlands, net	4,179			4,180
Minerals and Mineral Rights, net	296			298
Property, Plant and Equipment, net	115			118
Equity Investment in Timberland Venture	198			211
Equity Investment in Real Estate Development Ventures	142			139
Deferred Tax Asset	19			17
Investment in Grantor Trusts (at Fair Value)	46			45
Other Assets	57			54
Total Assets	$	5,354		$	5,695

LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	—		$	—
Line of Credit	180			467
Accounts Payable	32			24
Interest Payable	30			22
Wages Payable	10			29
Taxes Payable	11			10
Deferred Revenue	18			26
Other Current Liabilities	10			10
	291			588

Long-Term Debt	2,414			2,414
Note Payable to Timberland Venture	783			783
Other Liabilities	78			78
Total Liabilities	3,566			3,863

Commitments and Contingencies

STOCKHOLDERS’ EQUITY
Preferred Stock, $0.01 Par Value, Authorized Shares – 75.0, Outstanding – None	—			—
Common Stock, $0.01 Par Value, Authorized Shares – 300.6, Outstanding (net of Treasury Stock) – 177.1 at March 31, 2014 and 177.0 at December 31, 2013	2			2
Additional Paid-In Capital	2,947			2,942
Retained Earnings (Accumulated Deficit)	(221		)	(173		)
Treasury Stock, at Cost, Common Shares – 27.0 at March 31, 2014 and 27.0 at December 31, 2013	(942		)	(940		)
Accumulated Other Comprehensive Income (Loss)	2			1
Total Stockholders’ Equity	1,788			1,832
Total Liabilities and Stockholders’ Equity	$	5,354		$	5,695

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



	Quarter Ended March 31,
(In Millions)	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	30		$	56
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization	32			26
Basis of Real Estate Sold	6			25
Equity Earnings from Timberland Venture	(15		)	(14		)
Distributions from Timberland Venture	28			27
Equity Loss from Real Estate Development Ventures	1			—
Deferred Income Taxes	—			1
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)	(2		)	(3		)
Timber Deed Acquired	—			(18		)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds	—			(53		)
Other Working Capital Changes	(24		)	(52		)
Other	1			6
Net Cash Provided By (Used In) Operating Activities	57			1

CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland Acquisitions)	(16		)	(14		)
Timberlands Acquired	—			(2		)
Contribution to Real Estate Development Ventures	(4		)	—
Net Cash Provided By (Used In) Investing Activities	(20		)	(16		)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends	(78		)	(68		)
Borrowings on Line of Credit	283			291
Repayments on Line of Credit	(570		)	(117		)
Principal Payments and Retirement of Long-Term Debt	—			(174		)
Proceeds from Stock Option Exercises	1			25
Acquisition of Treasury Stock	(2		)	(2		)
Net Cash Provided By (Used In) Financing Activities	(366		)	(45		)

Increase (Decrease) In Cash and Cash Equivalents	(329		)	(60		)
Cash and Cash Equivalents:
Beginning of Period	433			356

End of Period	$	104		$	296

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

SEGMENT DATA

(UNAUDITED)



	Quarter Ended March 31,
(In Millions)	2014			2013
Revenues:
Northern Resources	$	77		$	74
Southern Resources	123			104
Real Estate	23			78
Manufacturing	90			86
Energy and Natural Resources	9			6
Other	3			—
Eliminations	(8		)	(8		)
Total Revenues	$	317		$	340

Operating Income (Loss): ^(A)
Northern Resources	$	16		$	11
Southern Resources	31			24
Real Estate	12			45
Manufacturing	9			10
Energy and Natural Resources	6			5
Other	(1		)	—
Other Costs and Eliminations, net	(17		)	(17		)
Total Operating Income	$	56		$	78

Adjusted EBITDA by Segment: ^(B)
Northern Resources	$	24		$	18
Southern Resources	49			38
Real Estate	18			70
Manufacturing	12			14
Energy and Natural Resources	8			5
Other	(1		)	—
Other Costs and Eliminations, net	(17		)	(17		)
Total	$	93		$	128

(A) For Segment reporting, Equity Loss from Real Estate Development Ventures of $1 million is included in Operating Income (Loss) for the Other Segment.

(B) Refer to the separate schedule, "Segment Data - Adjusted EBITDA" for reconciliations of Adjusted EBITDA to operating income and net cash provided by operating activities.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

SELECTED OPERATING STATISTICS

(UNAUDITED)



		2014
		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	22							$	22
Pulpwood	$/Ton Stumpage	$	12							$	12
Northern Resources
Sawlog	$/Ton Delivered	$	86							$	86
Pulpwood	$/Ton Delivered	$	43							$	43

Lumber⁽¹⁾	$/MBF	$	573							$	573
Plywood ⁽¹⁾	$/MSF	$	451							$	451
Fiberboard ⁽¹⁾	$/MSF	$	678							$	678

Sales Volume
Southern Resources
Sawlog	1,000 Tons	1,550								1,550
Pulpwood	1,000 Tons	2,054								2,054
Total Harvest		3,604		—		—		—		3,604
Northern Resources
Sawlog	1,000 Tons	667								667
Pulpwood	1,000 Tons	470								470
Total Harvest		1,137		—		—		—		1,137

Lumber	MBF	37,703								37,703
Plywood	MSF	39,188								39,188
Fiberboard	MSF	50,681								50,681

		2013
		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	21	$	21	$	22	$	22	$	22
Pulpwood	$/Ton Stumpage	$	11	$	11	$	11	$	12	$	11
Northern Resources
Sawlog	$/Ton Delivered	$	77	$	79	$	79	$	81	$	79
Pulpwood	$/Ton Delivered	$	43	$	42	$	43	$	43	$	43

Lumber⁽¹⁾	$/MBF	$	568	$	544	$	498	$	536	$	534
Plywood ⁽¹⁾	$/MSF	$	462	$	464	$	457	$	450	$	458
Fiberboard ⁽¹⁾	$/MSF	$	639	$	668	$	680	$	672	$	665

Sales Volume
Southern Resources
Sawlog	1,000 Tons	1,339		1,276		1,544		1,733		5,892
Pulpwood	1,000 Tons	1,771		1,688		1,952		2,153		7,564
Total Harvest		3,110		2,964		3,496		3,886		13,456
Northern Resources
Sawlog	1,000 Tons	704		581		636		566		2,487
Pulpwood	1,000 Tons	414		209		387		401		1,411
Total Harvest		1,118		790		1,023		967		3,898

Lumber	MBF	30,535		36,770		40,622		37,990		145,917
Plywood	MSF	46,905		48,364		46,709		45,164		187,142
Fiberboard	MSF	52,329		60,273		54,795		46,250		213,647

(1) Represents prices at mill level.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

LAND SALE STATISTICS

(UNAUDITED)



	2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic	3,035								3,035
Large Non-strategic	—								—
Conservation	3,415								3,415
HBU/Recreation	4,125								4,125
Development Properties	—								—
Conservation Easements	n/a								n/a
	10,575		—		—		—		10,575
Price per Acre
Small Non-strategic	$	1,325							$	1,325
Large Non-strategic	$	—							$	—
Conservation	$	1,685							$	1,685
HBU/Recreation	$	2,200							$	2,200
Development Properties	$	—							$	—
Conservation Easements	$	340							$	340

Revenue, ($ millions)
Small Non-strategic	$	4							$	4
Large Non-strategic	$	—							$	—
Conservation	$	6							$	6
HBU/Recreation	$	9							$	9
Development Properties	$	—							$	—
Conservation Easements	$	4							$	4
	$	23	$	—	$	—	$	—	$	23

Basis of Real Estate Sold	$	6							$	6
	2013
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic	5,685		17,130		17,300		3,985		44,100
Large Non-strategic ⁽¹⁾	36,000		—		15,370		—		51,370
Conservation	970		17,525		1,385		6,125		26,005
HBU/Recreation	7,595		9,825		9,455		20,095		46,970
Development Properties	—		—		—		—		—
Conservation Easements	n/a		n/a		n/a		n/a		n/a
	50,250		44,480		43,510		30,205		168,445
Price per Acre
Small Non-strategic	$	1,230	$	1,185	$	1,280	$	1,290	$	1,235
Large Non-strategic	$	1,475	$	—	$	3,415	$	—	$	2,050
Conservation	$	2,580	$	835	$	1,920	$	1,015	$	1,000
HBU/Recreation	$	2,015	$	1,925	$	1,925	$	2,100	$	2,010
Development Properties	$	—	$	—	$	—	$	—	$	—
Conservation Easements	$	—	$	—	$	—	$	600	$	600

Revenue, ($ millions)
Small Non-strategic	$	7	$	20	$	22	$	5	$	54
Large Non-strategic	$	53	$	—	$	53	$	—	$	106
Conservation	$	3	$	14	$	3	$	6	$	26
HBU/Recreation	$	15	$	19	$	18	$	43	$	95
Development Properties	$	—	$	—	$	—	$	—	$	—
Conservation Easements	$	—	$	—	$	—	$	5	$	5
	$	78	$	53	$	96	$	59	$	286

Basis of Real Estate Sold ⁽²⁾	$	25	$	17	$	26	$	22	$	90

Exhibit 99.2

Plum Creek Timber Company, Inc.

Notes to Land Sale Statistics

(Unaudited)

(1) During the third quarter of 2013, the company sold 15,370 acres of Large Non-strategic lands located in Oregon for $52.5 million. During the first quarter of 2013, the company sold 36,000 acres of Large Non-strategic lands located in Texas and Oklahoma for $52.7 million.

(2) Includes $9 million in the third quarter of 2013 for a 15,370 acre Large Non-Strategic sale located in Oregon and $18 million in the first quarter of 2013 from a 36,000 acre Large Non-strategic sale located in Texas and Oklahoma.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

DEBT MATURITIES SCHEDULE

March 31, 2014

(UNAUDITED)



	Borrowings
(In Millions)	Principal		Interest Rate
Annual Maturities through 2017:
2015	$	440	5.875	%

Exhibit 99.2

Plum Creek Timber Company, Inc.

Segment Data - Adjusted EBITDA

Reconciliation of Operating Income and Net Cash

Provided by Operating Activities

(Unaudited)

We define Adjusted EBITDA as earnings from continuing operations, excluding Equity Earnings from the Timberland Venture, and before interest expense (including any gains or losses from extinguishment of debt), taxes, depreciation, depletion, amortization, and basis in real estate sold. In addition to including Equity Earnings from Real Estate Development Ventures in Adjusted EBITDA, we also include, as an add back to Operating Income for the Other Segment, our proportional share of depreciation, depletion, amortization, and basis in real estate sold from this equity method investment. Adjusted EBITDA is not considered a measure of financial performance under U.S. generally accepted accounting principles (U.S. GAAP) and the items excluded from Adjusted EBITDA are significant components of our consolidated financial statements.

We present Adjusted EBITDA as a supplemental performance measure because we believe it facilitates operating performance comparisons from period to period, and each business segment’s contribution to that performance, by eliminating non-cash charges to earnings, which can vary significantly by business segment. These non-cash charges include timber depletion, depreciation of fixed assets and the basis in real estate sold. We also use Adjusted EBITDA as a supplemental liquidity measure because we believe it is useful in measuring our ability to generate cash. In addition, we believe Adjusted EBITDA is commonly used by investors, lenders and rating agencies to assess our financial performance.

A reconciliation of Adjusted EBITDA to net income and net cash from operating activities, the most directly comparable U.S. GAAP performance and liquidity measures, is provided in the following schedules:



	Quarter Ended March 31, 2014

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment ⁽¹⁾
Northern Resources	$	16		$	8	$	—	$	24
Southern Resources	31			18		—		49
Real Estate	12			—		6		18
Manufacturing	9			3		—		12
Energy and Natural Resources	6			2		—		8
Other	(1		)	—		—		(1		)
Other Costs and Eliminations	1			—		—		1
Other Unallocated Operating Income (Expense), net	(18		)	—		—		(18		)
Total	$	56		$	31	$	6	$	93

Reconciliation to Net Income ⁽²⁾
Equity Earnings from Timberland Venture	15
Interest Expense	(41		)
(Provision) Benefit for Income Taxes	—
Net Income	$	30

Reconciliation to Net Cash Provided By Operating Activities ⁽¹⁾
Net Cash Flows from Operations								$	57
Interest Expense								41
Amortization of Debt Costs								(1		)
Provision / (Benefit) for Income Taxes								—
Distributions from Timberland Venture								(28		)
Equity Earnings, Depletion and Basis of Real Estate Sold from Real Estate Development Ventures								(1		)
Deferred Income Taxes								—
Gain on Sale of Properties and Other Assets								—
Deferred Revenue from Long-Term Gas Leases								2
Timber Deed Acquired								—
Pension Plan Contributions								—
Working Capital Changes								24
Other								(1		)
Adjusted EBITDA								$	93

(1) Includes Equity Loss from Real Estate Development Ventures ($1 million) in Operating Income for the Other Segment, along with our proportional share of depreciation, depletion, amortization ($0), and basis in real estate sold ($0) from this equity method investment.

(2) Includes reconciling items not allocated to segments for financial reporting purposes.

Exhibit 99.2



	Quarter Ended March 31, 2013

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment
Northern Resources	$	11		$	7	$	—	$	18
Southern Resources	24			14		—		38
Real Estate	45			—		25		70
Manufacturing	10			4		—		14
Energy and Natural Resources	5			—		—		5
Other	—			—		—		—
Other Costs and Eliminations	(17		)	—		—		(17		)
Other Unallocated Operating Income (Expense), net	—			—		—		—
Total	$	78		$	25	$	25	$	128

Reconciliation to Net Income ⁽¹⁾
Equity Earnings from Timberland Venture	14
Interest Expense	(35		)
(Provision) Benefit for Income Taxes	(1		)
Net Income	$	56

Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations								$	1
Interest Expense								35
Amortization of Debt Costs								(1		)
Provision / (Benefit) for Income Taxes								1
Distributions from Timberland Venture								(27		)
Equity Earnings, Depletion and Basis of Real Estate Sold from Real Estate Development Ventures								—
Deferred Income Taxes								(1		)
Gain on Sale of Properties and Other Assets								—
Deferred Revenue from Long-Term Gas Leases								3
Timber Deed Acquired								18
Pension Plan Contributions								—
Working Capital Changes								105
Other								(6		)
Adjusted EBITDA								$	128

(1) Includes reconciling items not allocated to segments for financial reporting purposes.

PLUM CREEK TIMBER CO INC - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION - April 28, 2014

Attached files

PLUM CREEK TIMBER CO INC Reports